Exercise 5: Aave Position Setup and Optimization

⏰ Time Investment: 45-60 minutes 🎯 Goal: Master Aave's features and optimize your positions

📚 Required Reading Integration 📖 Primary: Lesson 5: Aave - The Monolithic Standard 📖 Supporting: Lesson 2: The Mathematics of Lending and Borrowing

🏗️ Phase 1: Aave Architecture Understanding (15 minutes)

Exercise 1: Compare Aave V3 vs V4

Feature	V3	V4
Liquidity Structure	_____	_____
Risk Isolation	_____	_____
Innovation Speed	_____	_____

Key takeaway: _________________________________

Aave V3 vs V4 Comparison Worksheet

💼 Phase 2: Position Setup (20 minutes)

Exercise 2: Plan your Aave position

Configuration:

• Network: _____ (Arbitrum/Base/Mainnet)

• Asset to supply: _____

• Amount: $_____

• Use as collateral: _____ (ON/OFF)

• Rationale: _________________________________

Exercise 3: If borrowing, calculate parameters

• Collateral: $_____

• Maximum LTV: _____%

• Amount to borrow: $_____ (conservative: 50% of max)

• Expected Health Factor: _____

• Target HF: > 2.0? [ ] Yes [ ] No

Aave Position Configuration Template

⚙️ Phase 3: Advanced Features (10 minutes)

Exercise 4: Understand modes

• Isolation Mode: When to avoid? _________________________________

• E-Mode: Risk level? _____ (High/Medium/Low)

• When would you use E-Mode? _________________________________

📊 Phase 4: Optimization (15 minutes)

Exercise 5: Rate comparison

• Current Aave rate: _____%

• Compare to: Morpho (%), Other (%)

• Should you move? [ ] Yes [ ] No

• Reasoning: _________________________________

✅ Action Items

• Set up position

• Configure monitoring

• Review weekly

• Consider V4 when available

---

← Back to Summary | Next: Exercise 6 →